[lwhlwh]

Hello

Firstly, it is advised to calculate the amount of right issue and value of right issue (portion valued at par and portion of share premium)

amount of right issue = 100 x 1/2 = 50 shares of right issues
Value of right issue (at par) = 50 shares x £1 =£ 50
Share Premium = 50 shares x £0.50 = £25

Then, since all right issues are subscribed, so the journal entries would be :
Dr Bank 75
Cr Ordinary share capital(at par) 50
Cr Share Premium 25

However, as the proceeds from right issue is used to repay loan, so
Dr Loan 75
Cr Bank 75

Therefore, in the balance sheet, the equity (capital and reserves) section would be shown as below (Reserves can include the share premium, general reserve, asset revaluation reserve and retained earning) :

Issued ordinary share at £1 each 150
Share Premium 75
Retained earning/ Profit or loss 25

Hope it would be helpful to you

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